Huaneng Power International, Inc. Announces Operating Results for 2009

USA - English

• USA - English

BEIJING, March 23 /PRNewswire-Asia/ -- Huaneng Power International, Inc. ("HPI" or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) is pleased to announce the audited annual operating results for the twelve months ended 31 December 2009 prepared under the International Financial Reporting Standards, in which the Company recorded consolidated operating revenue of RMB76.863 billion (equivalent to approximately USD11.257 billion, based on the USD-RMB exchange rate of USD1 to RMB6.8282 as at 31 December 2009), representing an increase of 13.31% over 2008, and profit attributable to equity holders of the Company of RMB4.930 billion (equivalent to approximately USD0.722 billion), representing an increase of 225.19% over 2008. Earnings per share amounted to RMB0.41 (equivalent to approximately USD0.06), and earnings per ADS amounted to RMB16.36 (equivalent to approximately USD2.40). The Board is satisfied with the Company's operating results in 2009.

The Board proposed to declare a cash dividend of RMB0.21 per share (inclusive of tax) to the shareholders for the year of 2009.

In 2009, in response to the international financial crisis and complicated operating situation, the management and all the staff of the Company worked closely to overcome difficulties and make progress, achieving the target of turning a loss into a gain and fulfilling the responsibility of supplying sufficient, reliable and clean electricity for the society. The Company also achieved new results in all aspects including safe production, operation management, energy saving, environmental protection, project development, capital operation and corporate governance. In Singapore, Tuas Power Ltd. recorded the best annual operating results since its incorporation despite of a complicated market environment, making contribution to the profit growth of the Company.

In 2009, the Company's total domestic power generation from all operating power plants on a consolidated basis amounted to 203.520 billion kWh, representing a 10.23% increase from the previous year. The annual average utilization hours of the Company's coal-fired generating units reached 5,220 hours, representing 381 hours above the average rate of the thermal generating units in China. In 2009, the accumulated power generation of Tuas Power Ltd. accounted for a market share of 24.3% in Singapore, same with previous year.

In 2009, the coal supply condition in China was relatively complicated. The Company had reinforced communication and negotiation with major contract suppliers of the Company, thus maintained an efficient channel for major coal supply. At the same time, the Company increased procurement of imported coal. The Company actively utilized the available internal resources of Huaneng Group and took full advantage of the economy of scale and management strength, and therefore controlled fuel costs effectively. The unit fuel cost of the Company's domestic power plants was RMB215.73 per MWh in 2009, representing a decrease of 13.50% from the previous year.

The Company highly values energy saving and environmental protection. By the end of 2009, all the operating coal-fired generating units have been installed with flue-gas desulphurization facilities. In 2009, the average equivalent availability ratio of the Company's domestic power plants was 91.95%. The average coal consumption rate for the power generated company-wide was 301.18 gram/kWh, 5.47 gram/kWh lower than that of the previous year. The average coal consumption rate for power sold was 320.10 gram/kWh, representing a decrease of 5.84 gram/kWh compared to the same period last year and 21.9 gram/kWh lower than the average level of the nation. The weighted average house consumption rate was 5.25%. The technological and economic indicators of the Company are maintained at a leading level in the PRC.

In 2009, the construction projects of the Company progressed smoothly. The newly commissioned generation capacity over the year was 5,832 MW. Unit 5 and Unit 6 (two 600MW coal-fired generating units) at Huaneng Gansu Pingliang Power Plant had completed the 168-hour trial run in February and March 2010, respectively. Besides, certain generating units of the Company were closed and had undergone capacity expansion and renovation. To date, the Company had an equity-based generation capacity of 45,912MW and a controlling generation capacity of 49,433MW.

The proposed projects of the Company also progressed smoothly. The overseas business has been further expanded, and the Tembusu multi-utility complex of Tuas Power Ltd. has commenced construction.

On capital operation, the Company acquired 55% equity interest in Tianjin Huaneng Yangliuqing Co-generation Limited Liability Company and 41% equity interest in Huaneng Beijing Co-generation Limited Liability Company from the parent company and 65% equity interest in Huaneng Qidong Wind Power Generation Co., Ltd. in 2009, through which the controlling generation capacity and the equity-based generation capacity of the Company increased by 2,137MW and 1,066MW, respectively.

On 15 January 2010, the Board of Directors approved the scheme for new issue of A Shares and the new issue of H Shares, which was estimated to raise proceeds of RMB10.3 billion. This non-public offering of the Company will be the first equity financing since the listing of the Company's A shares in 2001. The proposed issue has been approved at the general meeting and at the respective class meetings of the Company's shareholders as well as by the State-owned Assets Supervision and Administration Commission. According to the applicable regulations, the proposed issue is still pending approvals by other competent governmental authorities.

In 2010, on the basis of ensuring safe and stable production and maximizing power generation, the Company will strive to increase the annual power generation of the Company's domestic power plants to 230 billion kWh, and increase the coal-fired generating unit utilization hours of the Company to 5,100 hours. The Company will actively expand fuel supply channels, enhance fuel cost management and strive to reduce fuel costs; control production costs strictly, consolidate and increase the profitability of the Company; continue its focus on energy saving and environment protection, keep reducing energy consumption levels and keep major technical and economic indicators positive; enhance the management of projects in progress, enhance the operation of new generating units, accelerate project development and increase the ability of the Company in sustainable development. In accordance with the guidance of the government on energy policies, the Company will accelerate the construction of highly efficient, environment friendly and large-sized thermal power bases, accelerate the construction of co-generation projects, speed up the development of coal and power integration projects, push forward the development of clean energy, such as natural gas and wind power projects, push forward the development of CDM projects, increase the weighting of clean energy and improve power generation structure to ensure sustainable development.

Currently, the Company is one of China's largest listed power producers with controlled generation capacity of 49,433 MW and equity-based generation capacity of 45,912 MW. The power plants of the Company are located in 17 provinces, municipalities and autonomous regions in China. The Company also has a wholly-owned power company in Singapore.

A full version of this release, including the 2009 consolidated financial information of the Company and its subsidiaries prepared under IFRS, can be found by visiting this link: http://www.prnasia.com/sa/attachment/2010/03/20100324423150.pdf

    For enquiries, please contact:

    Huaneng Power International, Inc.
     Ms. MENG Jing / Ms. ZHAO Lin
     Tel:   +86-10-6649-1856 / 1866
     Fax:   +86-10-6649-1860
     Email: [email protected]

    Wonderful Sky Financial Group Limited
     Ms. Katy CHAN / Ms. Christine GU / Ms. Olive Zhang / Mr. Raymond HOU
     Tel:   +852-2851-1038
     Fax:   +852-2815-1352
     Email: [email protected]
            [email protected]
            [email protected]
            [email protected]

SOURCE Huaneng Power International, Inc.